Tomen Devices (2737) Q2 2026 earnings summary

Executive summary

• Net sales for H1 FY2025 reached ¥243,089 million, up 17.3% year-over-year, driven by strong demand for memory products, server/storage, automotive applications, and high-resolution camera CIS for Chinese smartphones, with price increases due to supply constraints.

• Net profit rose 18.8% year-over-year to ¥4,779 million, with profitability improving in Q2 amid sharp memory price hikes.

• Operating profit increased 36.4% year-over-year to ¥8,167 million, and ordinary profit rose 26.0% to ¥6,997 million.

• Comprehensive income grew 59.3% year-over-year to ¥4,345 million.

• Automotive and digital home appliances segments saw significant sales growth, especially in overseas markets.

Financial highlights

• Gross profit reached ¥10,240 million, up from ¥8,001 million year-over-year.

• Basic earnings per share increased to ¥702.77 from ¥591.68 year-over-year.

• Total assets rose 62.3% from the previous fiscal year-end to ¥184,998 million, mainly due to higher merchandise and receivables.

• Liabilities increased 106.8% to ¥133,071 million, primarily from higher short-term borrowings and accounts payable.

• Net assets grew 4.6% to ¥51,926 million, reflecting interim profit and dividend payments.

Outlook and guidance

• Full-year FY2025 forecasts were revised upward: net sales expected at ¥470,000 million, net profit at ¥6,400 million, and EPS at ¥941.05.

• Operating profit projected at ¥11,500 million, ordinary profit at ¥9,000 million.

• Dividend forecast raised to ¥300 per share.

• Demand for generative AI-related products is expected to continue, but memory price increases may moderate in late H2.

• Upward revision of financial results forecast due to tight memory market supply/demand, higher prices, and successful sales initiatives.